Affirm — the company which provides short-term, low-interest loans to customers of companies ordering goods online — reported earnings, and, well… it didn’t go very well. The buy-now-pay-later giant $AFRM plunged 21.45% in today’s session. 💩
EPS: $0.57/share
Revenue: $361 million, +77% YoY (compared to $328.8 million expected)
Affirm accidentally announced its earnings early in a tweet which has since been deleted. The tweet said that Affirm’s sales increased by 77% and that the company would beat revenue expectations, which was correct.
The company’s CEO, Max Levchin, shared: “We more than doubled gross merchandise volume year over year. Over the last 12 months, we have added nearly seven million active consumers to our network, while enabling 168,000 merchant partners to better serve their customers.”
Affirm shares surged immediately after the tweet, but have since plunged 21%. The tweet claimed “Another great quarter is in the books as we accelerated our growth,” followed by several figures emphasizing the company’s growth. The company leaked reduced guidance in the tweet, which prompted the selloff of its stock.
After removing its tweet, Affirm officially posted “Due to human error, a small portion of Affirm’s fiscal Q2 results were inadvertently tweeted from Affirm’s official Twitter account earlier today.” Ooof. 😅
$AFRM is down 1.18% in afterhours.